Скачать или смотреть RUSSIA: GOVERNMENT FIGHT TO AVOID CURRENCY COLLAPSE

(28 May 1998) English/Nat

Russia is fighting hard to prop up the plunging ruble and avoid a currency collapse that could lead to an economic meltdown.

Measures announced last night by the Russian government appear to have staved off the collapse of the country's financial markets. Business at the Moscow Exchange was brisk as traders declared themselves satisfied with the Central Bank's intervention. The Russian government is adamant that there will be no devaluation of the ruble. Boris Yeltsin regards a stable currency as one of the main achievements of his seven years in office and is anxious that Russia not be seen as the next Indonesia. But while Western investors are fleeing the market in droves, nothing approaching panic has taken hold of the streets of Moscow. Money-exchange offices were quiet this morning and there have been no reports of Russians dumping rubles for precious dollars. But average Russians are becoming increasingly concerned at the parlous state of the country's economy. With the Russian stock market reeling there is some doubt whether the country can restore confidence by itself. Russian officials have sounded out the IMF for a rescue package of cut-rate loans. Such a loan would make it both easier for Russia to cover its deficits as well as show Western confidence in Yeltsin's government. Uncontrolled devaluation would plunge millions of Russians into poverty and shatter their faith in Yeltsin and his government.

SOUNDBITE: (Russian)
"In the morning there was a crisis of faith in the government's ability to keep the ruble stable. But after the refinancing rate was raised the opposite happened as banks rushed to buy rubles."
SUPER CAPTION: Alexei Vlasov, President of the Russian Exchange

SOUNDBITE: (Russian)
"The devaluation of the ruble would mean the breaking away from all accords with international organisations, the sharp exodus from Russia of foreign capital and the loss of all possible investments. It would be one of the worst scenarios for the Russian economy."
SUPER CAPTION: Alexei Vlasov, President of the Russian Exchange

VOX POP: (Russian)
"They should do something so people's lives get better. But all they can do is talk. Where are the results?"
SUPER CAPTION: Nikolai

VOX POP: (Russian)
"We don't really understand what's going on but I think it's a minor catastrophe for the economy and the simple people don't like it."
SUPER CAPTION: Elena

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